Japan's Yamato Life Insurance files for bankruptcy

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London, October 10: : Japan's Yamato Life Insurance has filed for bankruptcy with USD 2.7 billion in liabilities, to become the first financial sector casualty of US credit crisis in Japan, according to media reports.

"Yamato Life Insurance on Friday became the first direct financial sector casualty in Japan of the US sub-prime mortgage crisis, filing for bankruptcy with 269.5 billion Yen (USD 2.7 billion) in liabilities," the 'Financial Times' reported on Friday.

According to the report, the failure of Yamato Life, which is a medium-sized life insurance company, is the first collapse of a Japanese insurance company in seven years.

The insurance firm's bankruptcy follows the collapse of Japan's first listed real estate investment trust (Reit), New City Residence Investment, which failed with 112.3 billion Yen in debts on Thursday.

"The failure of Yamato and New City Residence highlights the impact that the global credit turmoil is having on Japan, even though the country is not suffering from the liquidity problems that have beset other major markets," it said.